Purpose: To develop the skill of making and assessing economic arguments and to deepen understanding of the economic concepts introduced in Chapters 4 and 26.

Context: Normative economic statements are economic policy goals and values (opinions). There are two types of economic goals: efficiency and equity. We will begin with efficiency, which is covered extensively in Chapter 4, especially pages 78-85.

Consider these policies:

One: Large taxes on energy companies whose production activities cause environmental damage (assume a negative externality). (related to Chapter 4 reading)

Two: Significant government subsides to urban community food gardens (assume a positive externality). (related to Chapter 4 reading)

Three: Protective tariffs on goods imported from China. (related to Chapter 26 reading)

Task: Makeone substantive but succinct post (75-150 words) to the Activity 4: Normative Economics (Efficiency) Forum. For your post:

• Pickone of the policies above, start your own thread and, based only on your reading in Chapters 4 and 26,brieflygiveanefficiencyargument for or against that policy. WARNING: Do not post on any other topic.